McDowell Memo: Why is the Economy doing so well?
Government over regulation has cost the American taxpayer and average citizens Billions in lost income over the last 20 years . President Trump simply by doing away with 67 regulations has saved $8.1 Billion dollars from the useable income of businesses and consumers.
For instance the Tip Pooling Rule that allowed companies to take all tips and pay the workers an average amount no matter what service they had provided and also allowed the owner of the business to participate in this and also to keep a small handling fee. When this was done away with it makes it so that the person gets what they actually earned. I have always questioned the reasoning for this rule as it punished hard work.
The Consumer Financial Protection bureau rule that allowed for mandatory arbitration. This had been repealed and kept consumers from filing class action suits against groups
Obama's order to stop the transfer of military surplus to Police and Governments free of charge. Trump has reinstated this to help agencies that needed bulletproof vests, High Water Rescue Vehicles , Generators, etc. that those agencies could never afford to buy. Saving the Federal Government from doing grants to get them the items and the cost of storing all of this merchandise to the Federal Government . The Justice Department states that for every $5800 in federal giveaways in the 1033 program the local government Saves $112,000.
Repealing portions of the Clean Power Plan has resulted in $33 Billion in savings and spurred the increase in gas and oil exploration, which has returned us to the largest exporter of those items in the world.
From
Further the Committee stated the following
Approximately 240 years ago, Adam Smith cautioned the readers of his Wealth of Nations that policy actions touted by businesses and politicians as being in the public interest might actually be positions promoting their own, particular and very special interests. Fast forward to modern times and crony capitalism: the pursuit of private gain through influence in the public sector, which is a frequent topic of discussion and debate among the citizenry.26 In the field of regulation, such manipulation can potentially have a serious cost. Influence over the regulatory process could be used to stifle competition, allowing existing businesses to charge higher prices. To a degree perhaps beyond even what Adam Smith appreciated, regulations could be used to preclude innovation that would challenge incumbent businesses. Stifling innovation could, in the longer run, slow U.S. productivity growth, and advantage other nations that would allow the same innovation to achieve more-dynamic economies to challenge ours. For that reason, building regulatory governance structures that maintain a level playing field and encourage competition is essential.
So the bottom line is that any regulation should be tested with a drive to not negatively impact the ability of the citizens to afford items and yet protect them from injurious actions or products.
This regulation is so far spread that almost every item you purchase has a great portion of its cost to meet regulatory constraints.
Hope this opens some eyes and understand that Trumps economy is based on just letting people run their business their way.
For instance the Tip Pooling Rule that allowed companies to take all tips and pay the workers an average amount no matter what service they had provided and also allowed the owner of the business to participate in this and also to keep a small handling fee. When this was done away with it makes it so that the person gets what they actually earned. I have always questioned the reasoning for this rule as it punished hard work.
The Consumer Financial Protection bureau rule that allowed for mandatory arbitration. This had been repealed and kept consumers from filing class action suits against groups
Obama's order to stop the transfer of military surplus to Police and Governments free of charge. Trump has reinstated this to help agencies that needed bulletproof vests, High Water Rescue Vehicles , Generators, etc. that those agencies could never afford to buy. Saving the Federal Government from doing grants to get them the items and the cost of storing all of this merchandise to the Federal Government . The Justice Department states that for every $5800 in federal giveaways in the 1033 program the local government Saves $112,000.
Repealing portions of the Clean Power Plan has resulted in $33 Billion in savings and spurred the increase in gas and oil exploration, which has returned us to the largest exporter of those items in the world.
From
A Policy Statement by the Committee for Economic Development of The Conference Board
September 27, 2017
Regulations, also called administrative laws or rules, are the primary vehicles by which the federal government implements laws and agency objectives. They are specific standards or instructions concerning what individuals, businesses, and other organizations can or cannot do.
Market economies need clear rules to function efficiently. Without a legal framework establishing and enforcing property rights and the “rules of the game,” our free enterprise system could not exist. Regulations issued by the executive branch affect every aspect of our lives. From the moment you wake up until the time you go to sleep, regulations influence what you do. Yet most people know very little about the impact of regulations or the process by which they are produced.3
Further the Committee stated the following
Approximately 240 years ago, Adam Smith cautioned the readers of his Wealth of Nations that policy actions touted by businesses and politicians as being in the public interest might actually be positions promoting their own, particular and very special interests. Fast forward to modern times and crony capitalism: the pursuit of private gain through influence in the public sector, which is a frequent topic of discussion and debate among the citizenry.26 In the field of regulation, such manipulation can potentially have a serious cost. Influence over the regulatory process could be used to stifle competition, allowing existing businesses to charge higher prices. To a degree perhaps beyond even what Adam Smith appreciated, regulations could be used to preclude innovation that would challenge incumbent businesses. Stifling innovation could, in the longer run, slow U.S. productivity growth, and advantage other nations that would allow the same innovation to achieve more-dynamic economies to challenge ours. For that reason, building regulatory governance structures that maintain a level playing field and encourage competition is essential.
So the bottom line is that any regulation should be tested with a drive to not negatively impact the ability of the citizens to afford items and yet protect them from injurious actions or products.
This regulation is so far spread that almost every item you purchase has a great portion of its cost to meet regulatory constraints.
Hope this opens some eyes and understand that Trumps economy is based on just letting people run their business their way.
Great visual display of the problem
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